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Informist, Thursday, Aug. 6, 2026

By Shakshi Jain, Diksha Tripathy, and Utthara E.S.

NEW DELHI/MUMBAI – Firstsource Solutions Ltd. chose to keep its revenue growth guidance unchanged for this fiscal year, even as the healthcare segment deal from which it had factored in 1.0-1.5% growth now stands terminated. This comes on the back of the underlying strength of the rest of the portfolio with large deal ramp-ups, a healthy pipleline, and the momentum of new client additions. The said deal was terminated due to a leadership change and the client choosing to continue with the earlier technology platform, Firstsource Solutions Managing Director and Chief Executive Officer Ritesh Idnani told analysts in a post-earnings conference call Thursday.

Firstsource Solutions has guided for revenue growth of 10-13% in constant currency terms for 2026-27 (Apr-Mar) alongside an earnings before interest and tax margin of 12.25-12.75%.

"This (Apr-Jun) has been the best quarter that we've had in the last four quarters in terms of new deal wins from a pipeline standpoint and several of these deals are actually ramping up in quick order. So, we think that provides a strong offset for the 1% to 1.5% that we feel potentially comes off because of this particular client programme winding down," Idnani elaborated. He later also added that some of the new deal wins may take around three months to ramp up, meaning the second half of the year could be stronger. However, overall sales growth for the year is likely to be in line with the guidance.

For the June quarter, Firstsource Solutions reported a one-time cost of INR 356.73 million estimated to be non-recoverable following termination of contract by the said client, based on the current progress of settlement discussions. Chief Financial Officer Dinesh Jain, however, said the company is actively pursuing recoveries for the balance contractual entitlement from the client, including this charge which was taken on prudence basis.

The RP-Sanjiv Goenka Group company also recognised a one-time cost of INR 283.74 million on account of indemnification of a regulatory penalty to a customer arising from non-fulfilment of contractual performance obligation. "We have filed a claim under our insurance policy and are actively pursuing recovery. Based on the policy coverage, we remain optimistic about a favourable outcome," the finance head said. "Again, on the prudence basis, we need to account for this charge because, strictly speaking, when you have actual certainty of the recovery from the insurance, only we can recognise the charge back. So, till the time we have to take this charge." 

Commenting on segments, CEO Idnani said the broader healthcare portfolio remains amongst the company's most strategic and differentiated vertical with a healthy deal pipeline and continued new client additions. He added that the company exited the June quarter with a well-balanced pipeline across telecommunications, education technology, media, and other technology clients, which gives Firstsource Solutions confidence to return to a healthier growth trajectory as transitions complete and volumes normalise. In the diverse industries vertical, the company has a "well-qualified, healthy pipeline" across both the utilities and retail categories, which gives it confidence in improving momentum as seasonal effects normalise and new deal wins ramp up, according to Idnani. "In utilities, the underlying demand remains steady, supported by a healthy pipeline, and we are optimistic on conversion over the coming quarters," he said.

In terms of geographies, Firstsource Solutions is incubating new growth opportunities in North America by setting up a sales presence in Canada and by replicating capabilities where the company demonstrated strength in other markets. "We continue to see broad-based momentum across our three core verticals in the region and expect to sustain this over the coming quarters," Idnani said. He added that the company has partnered with several startups from the Silicon Valley as targeted investments.

In Europe, the pipeline continues to build well, supporting the company's view of a gradually improving growth trajectory as conversions and ramp-ups play out, as per Idnani.

Firstsource Solutions detailed its June-quarter earnings during market hours Thursday. Its shares closed 13.4% lower at INR 293.95 on the National Stock Exchange.  End

Edited by Deepshikha Bhardwaj

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